There's No Place Like Homebuilders

By

Martin Tillier

 | Jul 10, 2014 | 4:00 PM EDT
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Wednesday, after market hours, Lumber Liquidators (LL) announced second-quarter same-store sales fell by 7.1%, and it significantly lowered its full-year 2014 profit forecast. Unsurprisingly, the stock has been hammered. In Thursday trading, the stock was recently down more than 20%. When I see movement like that, I look for opportunity. Unfortunately, I cannot find one in LL -- but that doesn't mean there isn't one at all.

I can't see an opportunity in the stock of Lumber Liquidators because the big drop is now over and looks entirely justified. The stock is not worth selling now, nor does it represent an obvious contrarian buy. There is an opportunity, though, and it lies in the other stocks that being dragged down with it, specifically, among the homebuilders....383 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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